Diesel price to rise, As FG Moves To Charge VAT After Oil Sector GDP Contribution Drop

Diesel Price To Rise, As FG Moves To Charge VAT After Oil Sector GDP Contribution Drops

2 mins read

The price of diesel might rise as the Nigeria Customs Service (NCS) is set to implement a value-added tax (VAT) on imported automobile gas oil (AGO), also known as diesel.

According to a report by the National Bureau of Statistics (NBS), a litre of diesel was N794.48 in July 2023. During the same period last year, the product cost N774.38 per litre.

However, the implementation of the VAT on the product could drive the price up, as a memo signed by PC Chibuoke (DC admin), on behalf of the area controller, Area I, Port Harcourt, revealed the NCS will begin to charge the 7.5 per cent VAT on diesel imported into the country.

The memo, titled ‘Request for Charge of Value Added Tax (VAT) on Autombile Gas Oil (ago) or Diesel Imported into the Country,’ referenced the “headquarters circular No. NCS/T&T/T/899/217/VOL.I of 27 July 2023 on the above subject matter”.

READ ALSO  Arik Air Chairman Faces Ultimatum For Debt Plan

“I am directed to inform you that henceforth, Value Added Tax (VAT) is to be charged on Automobile Gas Oil (AGO), and Procedure Code 4900 000 shall be used on all importations of AGO,” the statement reads.

Conveying the new development to importers and diesel agents in the memo dated 28 July 2023, the NCS said additional Code 409 shouldn’t be added to the importer’s declaration.

This comes amid a report by the NBS that the oil sector contracted in the second quarter of 2023, contributing 5.35 per cent to the Gross Domestic Product (GDP).

Prime Business Africa reported that the oil sector contribution fell to N2.94 trillion in the second quarter of this year, failing to surpass the N3.41 trillion reported in Q1 of the same year.

Credibility and transparency is our DNA at Prime Business Africa’. We strongly believe in the role of media as a watchdog of the society that powerfully promotes accountability and transparency in government.

By contributing to Prime Business Africa, you are helping to sustain good journalism and making sure that it remains free to all.

Support Investigative Journalism and Mentorship

Courageous Journalism of Truth,Transparency and Development is in the DNA of Prime Business Africa; By donating as little as N1000 or $1 today, you are helping to keep credible journalism and life-changing information free for all.

READ ALSO  CPPE Boss Unveils Blueprint For Economic Resilience, Roles Of Stakeholders
READ ALSO  Dollar Surges, Naira Drops To N965/$1 In Black Market
+ posts

Leave a Reply

Your email address will not be published.